. >> shepard: secretary of defense leon panetta also warns the cuts with hit the pentagon especially hard. while a great deal of the money would come from military training units 000s of civilians could face big pay cuts and even layoffs. particularly in two states. jennifer griffin at the pentagon for us tonight. >> reporter: iif the deep budgt cuts go into effect in 8 days time the hardest hit states will be california and virginia. 17% of the defense cuts in virginia will likely fall on one community known as hampton roads. in fact, the human impact of the sequester on small businesses in this area, these businesses contract to the navy, it is already being felt. tom taylor owns a ship repair business near norfolk. some of his contracts with the navy are already in jeopardy. >> it is not like turning on a picket. you don't turn it on and turn it off. if it is canceled these things are are months or years in the planning stage. if they are canceled they don't come right back, you know. so that is pretty alarming. >> i want to know when am i looking dark am i getting laid off in mar